What the heck is an INVERTED YIELD CURVE? For those sports enthuiasts it isn't a new pitch in baseball. An inverted yield curve refers to a point in time where long term interest rates are lower than short term interest rates. Why is this important to you? Read the article an find out! Actually, you don't have to read the article, that is what you pay me for, but you will be hearing a lot more about this in the coming months. It seems that we are entering into a period where we get to have our cake and eat it to - low interest rates to finance our long term mortgages and high short term interest rates to invest our money.......of course, it may not all be good. I'll be keeping my eye on this.
Inverted yield curve points to a weaker Fed, not a recession - Jul. 14, 2005
Scott Dauenhauer, CFP, MSFP